BloggeRhythms

Not much going on today, but much in the media’s being made about golfer Phil Mickelson’s possible involvement in insider trading. I mention it here because while many headlines boldly claim Phil may be guilty, the story itself seems to indicate something much less.

 

For example, Nathan Vardi’s column in Forbes on-line boldly states: “Feds Investigate Carl Icahn, Phil Mickelson And William Walters For Insider Trading”

 

Four paragraphs into the story, however, you find that “Icahn told news outlets on Friday that he did not know about any investigation and did not know Mickelson. Icahn called the suggestion that he was involved in improper trading “inflammatory and speculative.”

 

Mr. Vardi then writes that, “The investigation centers around trading that took place in 2011 in Clorox a company that Icahn tried and failed to take over at the time.” And, “appears to be looking at whether Icahn leaked details of his failed takeover bid to Walters, who Icahn does know, and Mickelson.”

 

Then details note that “Both Walters and Mickelson reportedly traded in Clorox stock around the time of the takeover bid." However, "as The New York Times pointed out yesterday, it would not be illegal for Icahn to leak details of a future trade and since he never joined Clorox’s board, he would not know any material confidential information about he company.”

 

Furthermore, “Indeed, Clorox fought the veteran activist investor every step of the way. The New York Times did highlight that among the more aggressive legal theories that could be pursued is that Icahn breached a fiduciary duty to his own investors. But even that seems like a stretch given that at the time Icahn himself owned more than 90% of his Icahn Enterprises and had already moved to return all the outside money in his hedge fund.”

 

So, if Mr. Verdi’s information's correct, very little, if anything, even remotely illegal’s going on here. And if something might have transpired it’s really quite minor. Yet the headlines would lead one to believe a major infraction took place, which is likely nothing more than an attempt to snare readers.

 

Therefore, I guess, this is another example of why people don’t trust the press any more and readership’s quickly approaching zero as it obviously should be.

 

That’s it for today folks.

 

Adios